Quizzes & Activities
Oligopoly (Revision Quizlet Activity)
- Level:
- AS, A-Level, IB
- Board:
- AQA, Edexcel, OCR, IB, Eduqas, WJEC
Last updated 2 Jan 2022
Test your understanding of oligopoly theory with this Quizlet revision activity! There are eightteen terms in this quiz.
Key Term Summary for Oligopoly
Abnormal profit: Any profit in excess of normal profit - also known as supernormal profit
Altruism: Disinterested and selfless concern for the well-being of others
Collusive oligopoly: When several large firms in an industry act to restrict price or output or share out the market
Concentration ratio: Measures the combined market share of threading firms in an industry
Duopoly: Market dominated by two rivals firms
Duopsony: Two major buyers of a good or service in a market
First mover advantage: When a business can develop a competitive advantage through early entry into an industry
Game theory: Study of how people behave in strategic situations
Heterogeneous goods: Products that are differentiated by design, packaging, functionality, performance.
Interdependence: When firms must take into account the likely reaction of rivals to changes in price and output
Joint profit maximisation: Price fixing with the aim of achieving an outcome associated with pure monopoly
Limit pricing: When a firm sets average revenue just low enough to discourage possible new entrants
Nash Equilibrium: Any situation where all agents in game are pursuing their best possible strategy given the strategies of all other participants
Non-price competition: Advertising and marketing strategies to increase demand and develop brand loyalty among consumers.
Pay-off matrix: A table used to simplify all of the possible outcomes of a strategic decision.
Price leadership: When other businesses accept price changes established by a dominant firm
Tacit collusion: When businesses co-operate but not formally, e.g. quiet or implied co-operation
Zero sum game: Where each participant's gain or loss is exactly balanced by losses or gains of the other participants.
You might also like

Who are Britain's Biggest Mortgage Lenders?
1st December 2022
Industry Profile: UK Broadband Market
Topic Videos
Key Diagrams - The Kinked Demand Curve (Oligopoly)
Topic Videos

RAC claims motorists are being ripped off by £5 million a day
6th January 2022